Right theory in business ethics is the right way to go about doing things. It is right for people and right for society. The theory can be used to determine what decisions are right or wrong, not only in business but also anywhere else. Right theory has a lot of components that make it up, all of which should be considered when making decisions. These components will be discussed below so you know how to use this right theory to help you make the right decision every time!
Many organizations and company leaders throughout the world are confronted with a conundrum of keeping their businesses and staff within the bounds of ethics and ethical responsibilities in their market sectors.
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The ethical theories that provide the essential and fundamental underlying principles or assumptions required in a system of thought that outweighs the choice of good vs. evil are stated and explained (Hartman & DesJardins 2010). Business leaders need to be well-versed in ethics in order to deal with any unanticipated events or occurrences.
To put it another way, ethics is “a code of conduct that guides what humans should do in terms of rights, obligations, societal advantages, equality, or unique merits. Ethical principles advise us to practice honesty, compassion, and loyalty” (Hartman 2006). As a result , ethical theories aim to be clear and systematic enough to respond to the most basic practical ethical questions.
Most ethical theories are based on them, and when corporate executives advocate for measures, it is typically the principles rather than the ideas that appeal to them. There are numerous ethical theories, including deontology, utilitarianism, casuist, virtue, kantianism, aristotelianism, and consequentialism (Hartman & DesJardins 2010).
In the scenario of MetaLife, a life insurance firm, it is critical for them not to attempt to excuse the charges by providing justifications, but instead come forward and put into place corrective actions to reassure their clients and investors of their honesty. As per the deontological theory, as a whole, the insurance sector should adhere to established ethical standards of conduct.
The deontological ethics theory is linked to the idea that obligations and duties should be meticulously upheld and obeyed by everyone when confronted with a deadlock (Hartman 2006). It’s clear that MetaLife’s sales staff are unfamiliar with deontological ethics since they’ve been negatively impacted by the firm’s deceptive actions, resulting in large class action lawsuits. The company’s public image will not improve as long as it hides and offers excuses.
According to the Kantian idea, ethics is the selection of correct actions, whereas deontological theory holds that human beings are governed by strict strong moral codes. According to Kantianism, MetaLife is obligated to take responsibility for its mistakes and attempt to repair them. Because its employees have refused to follow the company’s ethical standards of conduct, it has given itself a bad reputation. Approaching this problem, whether begrudgingly or with reluctance, is the first step toward restoring the firm’s reputation and work ethic. The next stage will be to address those responsible for the mess (Hartman & DesJardins 2010).
When companies leave customers dissatisfied, it places them in a lose-lose situation. Even if they do not seek compensation for their expenses, clients may still pursue the same course of action against the firm that caused them harm, no matter how long ago or far away they are located (Hecht 2000). This is because consumers will perceive any litigation against the company as an opportunity to obtain justice and change damages done to them by its misconduct (Bowie 2002).
The ethical context of an issue is defined by ethical ideas, which emphasize different elements of an ethical problem and lead to the most ethically acceptable solution according to the principles contained in the theoretical framework. “People generally base their personal choice of ethical theory on their life experiences,” says Hartman (2006). Many a time in life, one is faced with a quandary: deciding what is good or evil.
It’s a tough call for business, since it affects numerous parties at once (clients, employees, investors, stakeholders , and customers). Unethical decisions are frequently made in the interest of expediency because there are no immediate penalties. However, as is the case with MetaLife, these companies seem to catch up with the decision maker eventually.
Before taking the interview for the MetaLife Chief Executive Officer, consider these questions: Is he able to honestly identify a problem; how is he going to describe the company’s issues if he was on the other side; when and how did these problems develop; to whom does he owe allegiance and where is his loyalty as an employee of the organization.
Which factors influenced him to take the ethical way; any consequences of his decision being intentional; whether he is making a long-term or short-term fix; and, finally, if he is certain and confident in his choice.
Insurance is an important element of today’s life, and insurance professionals are a keystone to its success. They are, however, frequently neglected to the point where they resort to unethical methods in order to be recognized and have work done. The difficulties within MetaLife’s sales division can be linked to this, as instances of unethical service selling in order to earn bigger pay have been seen.
In terms of public policy, it is a violation to deceive consumers as well as a breach of the Deceptive Trade Practices Liability Act. The Chairman and management should be held accountable for discovering what it is and correcting it before future class actions are filed against the firm (Bowie 2002). Insurance agents are an essential component of both the business and industry as a whole. Every day, the agent interacts with the general public, and how he runs his company has a long-term impact on clients and customers, as well as being relevant to the insurance sector in general.
After deciding to openly confess that there are no severe sales compliance measures inside the firm, and give a public apology to consumers, clients, investors, stakeholders, and company owners during an interview should guarantee that sales staff in the division as well as all insurance brokers adhere to the code of ethics and maintain high standards by providing them with adequate and correct information and training.
Taking responsibility is a wonderful thing to do, yet it’s difficult because you have no idea how the action will be received. It reminds me of taking care of my children when I perform it for them (Trevino & Nelson 2010; Bowie 2002).
After understanding that ethics are for their own benefit, many businesses, particularly in the insurance industry, have chosen to adopt them. Unethical practices are frequently costly and tarnish a firm’s reputation in the long run at least. Despite being on the market since 1922, State Farm, a well-known insurance and financial services company worldwide, is still growing today.
With fewer farmers owning automobiles and having far less accidents than city drivers, one of its ideals was to provide insurance at a lower rate. This simply demonstrates the influence of ethical standards on decision-making. Instead of charging identical premiums to everyone and making enormous profits, they decided to cater to each person’s differences.
The insurance agent in this industry should know the significance and nature of the goods he or she is selling, be able to assess a customer’s needs and preferences, and be conversant with statutory obligations.
A methodology for resolving ethical dilemmas using moral reasoning or moral character is known as ethical theories. The overall classification of ethical theories comprises attempts to find solutions to issues of injustice and personal freedoms that do not necessarily require the application of existing legislation or principles.
There are many competing ethical theories, and each has a distinct approach to resolving conflicts. Ethics in business is not restricted to actions; it may also include outcomes of actions and a person’s moral character. According to utilitarianism, an ethical theory that states that the consequences of an action determine its morality.
This idea focuses on the person who is making the decision rather than the actions or results themselves. According to Aristotle, “virtue” was defined as a character trait that showed itself in repeated actions. (Boatright, 2012) This implies that you are regarded virtuous if you do the correct thing once; however, you must be consistent if you want to be considered virtuous.
Virtue qualities include compassion, bravery, politeness, and so on. These characteristics not only aid in ethical decision-making but also make people who possess them happy. When a person has virtue as part of their character, their actions will be moral and ethical without requiring whether or not they want to do something – the choice would be the same.
The characters’ good behavior and sentiments would attest to the virtues of the virtue theory. The moral argument for the virtue theory would be demonstrated in their actions and sentiments. The benefits of the virtue theory include teaching people to acquire excellent moral character qualities, which leads to more ethical decision-making based on personal character. Furthermore, by encouraging individuals to develop good moral character, the virtue theory encourages them to make ethical commercial decisions as well as ethical personal choices that lead to a greater sense of fulfillment.
A drawback of virtue ethics is that it tries to establish a list of virtues that people should have, each with its own set of criteria. This concept allows for justice to be quantified by an equation, in which the portion received by each individual is justified by some relevant difference, ensuring equality. Each person should get precisely what they put in; if you work one hour longer than someone else, you should be compensated for one more hour.
This is also correct because you are being paid for exactly what you put in, and the other person isn’t shortchanged in any manner since they didn’t work that extra hour, therefore they shouldn’t get the additional pay. This idea helps to insure impartiality while making a decision; it is not based on justice since to your moral character or consequence of your action.
The purpose of this essay is to see whether there’s an ethical theory that may be successfully applied to commercial enterprises. To answer this question, first you must define the primary ethical theories, such as utilitarianism, deontology, and virtue ethics, before seeing if there are any alternatives. The ethical requirements, issues, and limitations of work settings will then need to be evaluated so that the various theories may be compared in context.
It will also be essential to distinguish between terms like “accurate” and “useful,” because these end up meaning two distinct questions, each of which does not need to be addressed in the same way. Another important aspect of this discussion is the broader question of why there should be ethics in workplace organizations in the first place, as well as how much ethical behavior is feasible in the corporate world. Hopefully, by providing a structure within which the essay answer may be included, this will help to shed some light on the topic.
To begin with, the following approaches to moral issues will be established: act-utilitarianism and deontology. These are not ancient because they have been around longer than virtue ethics, but rather because they have long been the ways most commonly utilized as a foundation for attempting to resolve ethical difficulties. The approach of virtue ethics concerning moral circumstances will be investigated in order to analyze differences and benefits, as well as concerns.
Jeremy Bentham and John Stuart Mill refined utilitarianism, which is a sort of consequentialism. It holds that it is necessary to make the world a better place, therefore the proper action is the one with the greatest effects. Utilitarianism goes a step further by defining the choice that will result in the most happiness as well as establishing this as its goal.
The philosophy of Act-utilitarianism holds that each case should be evaluated individually in terms of which option would give the greatest amount of pleasure; as a result, there are no laws to follow, but the theory does appear to provide a decision-making procedure. This appears to be an appealing answer to ethical issuesintuitively. Utilitarianism is a great moral ideal because it encourages us to try to increase happiness.
The goal of this essay is to determine whether there exists an ethical theory that may be successfully applied in business. To answer this question, first you must define the main ethical theories: utilitarianism, deontology, and virtue ethics. After that, see if any alternative options exist.
After that, the ethical requirements, problems, and limitations of business organizations will have to be assessed in order for the various theories to be evaluated. It’ll also be crucial to make a distinction between terms such as “accurate” and “useful,” since these really imply two distinct questions with answers that don’t have to be the same.
Additionally, it is adaptable in that the proper action is appropriate for everyone. However, as a practical and functional moral evaluation system, utilitarianism has several issues. Because measuring happiness is so difficult, and if it’s not feasible to choose which of several options generates the most pleasure, it follows that no decision on what action is right can be made.
Even a well-chosen and carefully carried out action might lead to unfortunate consequences that produce less happiness than anticipated. Is it moral to kill an innocent person if two others may be saved by an organ transplantation? Is it always and inevitably right to do something because it satisfies the most people? – Brady (1999) disputes this: “the majority vote is not an ethic; it is a social choice technique.”
Deontology, as presented by Kant, is the belief that the best action is the one that produces the greatest benefits. It is based on a set of moral laws, and it argues that the proper behavior should be one that follows these rules. Deontology appears to appeal to common sense because duties involve unique responsibilities to family.
For a long period, business ethics has been a global concern, as the example of business deliveries illustrates. Business ethics is defined as the practice of making decisions that will ensure the reputation of a company’s reputation is ethically clean in commercial transactions. It entails that transparency be considered during decision-making and that ethical concerns in business delivery are critical to preserve the company’s reputation.
Manager’s can benefit from business ethics. Business ethics assist managers in making the correct decision in a commercial transaction to ensure that their organization continues to grow. Ethics may be defined as the study of how morality factors into human decisions to establish their professional reputation (Borland 1999). There are several ethical options for resolving commercial transactions. The term ethics has a second, distinct meaning in certain cases, which is to indicate the branch of moral philosophy. In order to make the appropriate decision in business, every supervisor has a tactic for demonstrating transparency and accountability to the company.
Teleological views: these are the behavior of an individual or the outcome of an action. (mill, 1864). Ethical egoism implies that the choice that each person makes will be in the organization’s and other individuals’ best interests and will be mutually beneficial in business transactions. The Latin word for “self,” ethical egoism allows for self-interests to play a role in individual activities as long as there are also positive benefits for others.
The degree of rationalization may lead to the justification that it is necessary to pursue one’s own interests in order to achieve a good result for others. (Beauchamp and Bowie 1997). Deontological theories: This aspect considers whether or not an action is moral or unethical. The responsibility of the individual making such a decision is carefully considered, since ethics may come into play. ethical ideas; these ideas are connected with philosophy empiricism and utilitarianism via way or approach.
The act of utilitarianism is concerned with choosing which will make you feel at ease during a business transaction, and the outcome of the deal will be good depending on how you apply it. According to Rule Utilitarianism, managerial choices would result in possible rules of action. (Graham 1990). In the context of company-to-business marketing, corporate reputation refers to a manager’s approach to other critical issues that may help protect the firm’s image.
If adherence to the rule leads to a better outcome than would otherwise be the case, it is a rule that will be highly regarded. The difference between act and rule utilitarianism is that in calculating an impact on business-related issues, the result should be given considerable weight.
According to utilitarianism, our duty or obligation in every scenario is to perform the action that will create a possible balance of good over evil. Pleasure is valued more than pain and harms in classic utilitarianism as they are considered detrimental.
The consequence of utilitarianism is always uncertain in the conduct of decision making, and in some circumstances, the result is not positive. Rule utilitarianism adds that at times, there is a level of regard in decision-making that managers must give to make the appropriate business delivery decisions.
However, within rule utilitarianism, there is a difference between the strictness and absolutism of this particular branch. Strong Rule Utilitarianism is an absolutist theory that advocates for strict rules that apply to everyone at all times and can never be violated. According to John Stuart Mill, executives should be eager to make decisions that will result in a good outcome in business transactions. If the decision leads to profit, for example, a utilitarian viewpoint might advise against telling lies.
EXAMINING REPUTATION IN BUSINESS ETHICS
Because of an ethical violation that the decision maker considered minor, company reputation has been declining. Professional will consider a tiny ethical transgression acceptable and will begin to justify any type of unethical behavior, regardless of size (Kant 2004).
Furthermore, a company’s reputation in the market should be good. Many businesses are doing everything they can to preserve the reputation of their brand. Business reputation is a valuable resource; many firms work hard to maintain or restore their image. Many firms have realized that tarnishing one’s reputation is difficult to repair and has become a priority for many companies. Business ethics, as a practical approach, may be regarded as a method of conducting business in an ethical manner. The foundation of any company’s business reputation is its trustworthiness. It takes only one mistake to damage or ruin a company’s reputation (Boatright 2007).